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    Activity costs

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    Activity costs are described as ________ over the long run because management adjusts the amount of resources employed to correspond to the demand for those resources.

    fixed, varible, committed, or non-discretionary

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    Solution Preview

    Answer is variable
    Activity costs are fixed over short run as management cannot change the resources. However, over the long run, these costs are variable as management can reduce or increase the resouirces employed to correspond to the demand for those resources. For example: If a product uses 10 ...

    Solution Summary

    Activity costs are briefly highlighted for long run resources. Variable management is identified.